In the rapidly evolving landscape of artificial intelligence investment, the spotlight has widened beyond traditional giants like NVIDIA. The Global X Artificial Intelligence & Technology ETF (AIQ) has emerged as a noteworthy player, delivering a 52% return over the past year. This performance highlights a strategic diversification, reaching beyond conventional U.S.-centered tech investments, marking a shift in investor focus. In the same period, NVIDIA returned 42%, illustrating that alternative approaches like AIQ’s diversified portfolio can yield significant results in an AI-focused strategy.
AIQ’s approach has diverged notably from funds like the Invesco QQQ Trust, which returned 35% in the same timeframe by concentrating on U.S. mega-cap tech stocks. The ETF’s outperformance has been fueled by exposure to foreign semiconductor companies like Samsung and SK Hynix, whose impressive returns of 111% and 211% respectively in the last year are not available to QQQ or similar funds. Historically, the narrative around tech investment focused heavily on U.S-based giants, but AIQ’s strategy represents a significant shift toward embracing global supply chains that integrate components from diverse markets.
What Makes AIQ Stand Out?
AIQ distinguishes itself by holding 97 different positions, spreading risk and tapping into markets that form the backbone of the AI supply chain, including semiconductor giants in South Korea and Taiwan. This diversification reflects a broader strategy, mitigating the risks associated with relying solely on U.S. stocks like NVIDIA. While its portfolio includes only about 3% exposure to NVIDIA, the fund holds significant stakes in Samsung Electronics (5%) and SK Hynix.
Why Not Just Stick with QQQ?
The QQQ fund is heavily concentrated in top U.S. tech stocks, with NVIDIA making up nearly 10% of its holdings. This focus posed a risk when NVIDIA’s valuations fluctuated, as seen when its share price fell 9% in a single month of 2026. Such concentrated exposure amplifies risks tied to individual company performances.
In contrast, AIQ’s strategy leverages international holdings like Taiwan Semiconductor, which experienced a 6% rise when other tech stocks declined. These diversified international exposures offer a hedge against market volatility impacting major U.S.-based tech companies.
Why Choose a Basket over a Single Chip Brand?
Investors are increasingly considering diversified investment avenues that encompass the entire technology ecosystem. For NVIDIA enthusiasts, a portfolio like AIQ’s offers complementary exposure while insulating from single-stock volatility.
Despite NVIDIA’s recent fiscal success with $81.6 billion in Q1 FY27 revenue, largely through data center networking, expectations are that future returns need diversification. AIQ provides this without overcommitting to a singular growth trajectory.
Broadcom (NASDAQ:AVGO), with its rise in AI semiconductor revenue, further exemplifies AIQ’s comprehensive approach. This includes companies like Taiwan Semiconductor, which remain instrumental across multiple tech platforms.
In summary, while QQQ remains a reliable choice for tech investors, AIQ offers a unique diversified exposure that incorporates less accessible yet rapidly growing foreign markets. This factor may appeal to investors seeking broader geographic reach in the AI sector.
